Reuters reported today that Aon’s $30 billion deal to purchase Willis Towers Watson is facing a probe by the European Union. The investigation is likely to last about 5 months, and was brought on in large part by the sheer size of the transaction.
Once the acquisition is complete, the combined company would overtake Marsh & McLennan Companies to become the world’s largest insurance broker, therefore increasing its pricing power.
Aon also chose not to make any concessions to the European Union in advance of the investigation, reflecting confidence that the deal would go through. Despite the optimism, it appears increasingly unlikely that the first half of 2021 target set by the companies for the completion of the deal will be missed.